This article extends one of the primary models used for calculating the Social Cost of Carbon (SCC), DICE, to account for uncertainty regarding economic damages per additional warming degree and uncertainty over the temperature response from doubling atmospheric CO2. Coupled with consumption...

This paper builds a benchmark framework to study optimal land use, encompassing land use activities and environmental degradation. We focus on the spatial externalities of land use as drivers of spatial patterns: land is immobile by nature, but local actions affect the whole space since...

Yearly weather variability has an impact on agricultural supply and farmer welfare. More accurate weather predictions may increase the net returns for farmers but the indirect environmental impact of forecasts has not been examined. A stochastic bioeconomic model, which includes weather...

We compare environmental impacts associated with incoming foreign direct investment vs. domestic capital in China. We use aggregate data on Chinese provinces' economic and pollution indicators to explore the effects of the financial origin of fixed capital. Our simultaneous models consider three...

This paper investigates the effect of foreign direct investment (FDI) on domestic firms’ air pollution emissions in a developing country context. We provide quasi-natural experiment evidence from China, using a plausibly exogeneous relaxation of FDI regulations upon China’s WTO accession in...

The paper investigates the dynamic relationship between renewable energy usage and trade performance in sub-Saharan Africa (SSA), while considering the conditioning role of corruption control, regulatory quality, and the private sector access to finance. Focusing on 42 SSA countries for the...

Political Economy may provide an important link between inequality and pollution. This paper studies the dynamic relationship between inequality and redistributive policy leading to differing transitional paths of pollution to the steady state, using a pollution-augmented framework developed by...

We set up a simple dynamic macroeconomic model with (i) polluting consump- tion and a preference for a clean environment, (ii) increasing returns in abate- ment giving rise to an EKC and (iii) sustained growth resulting from a linear final-output technology. The model captures two sorts of...

In a two-period overlapping generations model, this paper demonstrates that the relationship between the environmental taxation and the economic activity (level- and growth-output) becomes inverted-U shaped, when the detrimental impact of pollution on health and the private decision of each...